Keeping old cars on the road - includes related article on AutoZone's advertising strategy

American Demographics, July, 1997 by Alison Stein Wellner

Millions of old-car owners never set foot in their local auto-parts store, yet their wheels keep turning, thanks to professional mechanics. Americans spent $54.5 billion in automobile repair shops in 1994, a 10 percent increase from the previous year, according to the parts association. That figure does not include spending on repairs done at gasoline stations. About three-fourths of the 12,000 independent service repair shops belonging to the Automotive Service Association (ASA), had a one-year sales increase in 1996, says Monica Buchholz, the associations vice president of communication. Eighty-five percent expect increased sales in 1997.

A growing number of old cars on U.S. roads doesnt guarantee success for service providers. Our customer base is becoming more knowledgeable and sophisticated, Buchholz says. It used to be that shops could get by on technical know-how. Now they need management and marketing techniques, and excellent customer service. Shops court busy car owners with things like a courtesy phone and desk for business people, free coffee, and play areas for children. Some even stay open 24 hours a day.

Portrait of a Driver

As car owners become more knowledgeable about their machines and options, they also are harder to categorize as customers. The aftermarket industry traditionally has segmented its customers as Do It Yourselfers (DIYers) or Do-It-For-Meers (DIFMers). Consumers were thought to fit cleanly into one or the other--either they maintain and repair their cars themselves, or pay someone else to do it. The old model, with a household belonging to either DIY or DIFM is no longer valid, says Rich Seleno, aftermarket managing director at The Polk Company. Theres segmentation inside each group, and crossover between the groups. So, a Do-It-Yourselfer wont necessarily do everything his car needs. And a DIFMer may check his own oil once in a while.

In 1995, Polk surveyed 87,500 households about how they maintain their cars. At 13 percent, Do-it-Yourself-only householders are a small but important share of households. They are the retail aftermarkets most reliable customers. One reason they work on their cars is their relatively low income--45 percent have household incomes below $30,000 a year. In comparison, 29 percent of householders who always use a mechanic (DIFM), and 36 percent who sometimes do it themselves and sometimes use a professional (DIY/DIFM) have incomes below $30,000.

Many DIY-only householders have cars that probably need a lot of work, which is another reason why they prefer to do repairs themselves. Thirty-two percent of DIY-only households own a vehicle with at least 100,000 miles, as do 32 percent of DIY/DIFM households and 17 percent of DIFM-only households.

The largest share of householders are Do-it-For-Meers, at 41 percent. They head to the service shop when something needs fixing. One reason is that they are better off than other households. More than half have household incomes above $50,000, so they can afford professional servicing. Many DIFM householders are middle-aged or older. They are empty-nesters in their prime earning years. Almost three-fourths do not have children under age 18 living at home, compared with 62 percent of DIY/DIFM households and half of DIY-only households.